Canext Energy Ltd.

Canext Energy Ltd.

October 17, 2008 01:38 ET

Canext Provides an Operational Update and Renews Its Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2008) - Canext Energy Ltd. ("Canext" or the "Company") (TSX VENTURE:CXZ) is pleased to announce two new oil wells at Sweeney have commenced production. The wells are currently producing at a restricted combined rate of approximately 230 bopd (140 bopd net). The Company is monitoring well performance and has plans to gradually increase production. Total oil production from the Sweeney pool now exceeds 320 bopd (190 bopd net). Canext is proceeding with plans to drill 1-2 more wells at Sweeney prior to year end. Current production from all areas is approximately 1,200 BOE/d net and Canext remains on track to exit the year at 1,400 - 1,500 BOE/d.

At Pouce Coupe, the Company has drilled and cased its third (Canext 45% interest) Montney horizontal well to a measured depth of 3,606 m. Based on field estimates, the cost to drill and case the three long length horizontal wells was approximately $2,100,000 per well. The first horizontal well is currently being tested inline. The Company is also flow testing the second vertical well of its 2008 summer drilling program at Pouce Coupe. Results from these tests are expected to be released shortly.

Canext intends to renew its normal course issuer bid (the "Bid") pursuant to the bylaws, rules and policies of the TSX Venture Exchange (the "TSXV"). Subject to regulatory approval the Bid will commence on October 24, 2008 and expire on October 23, 2009 unless terminated earlier by the Company. Pursuant to the Bid, the Company may acquire up to an aggregate of 4,424,275 common shares, representing 5% of the 88,485,493 common shares issued and outstanding as at October 16, 2008. It is the Company's intention to acquire the common shares at prices that represent a discount to the underlying net asset value. Common shares acquired under the Bid will be subsequently cancelled. The objective is to provide capital appreciation and market stability for the benefit of the Company's shareholders. Purchases under this Bid will be carried out by Tristone Capital Inc. through the facilities of the TSXV.

Reader advisory:

The term "BOE" may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1 bbl has been used which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Investors are cautioned that the preceding statement of the Company may include certain estimates, assumptions and other forward-looking information. The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements, which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including natural gas/oil prices, reserve estimates, drilling risks, future production of gas and oil, rates of inflation, changes in future costs and expenses related to the activities involving the exploration, development and production of gas and oil hedging, financing availability and other risks related to financial activities. Canext undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canext Energy Ltd.
    Stephen Kapusta
    President and CEO
    (403) 263-3232
    (403) 234-8773 (FAX)